WID.world Technical Notes 2017/8 World Inequality Report 2018 Technical Notes for Figures and Tables Lucas Chancel Richard Clarke Amory Gethin This version: December 9th, 2017 1 World Inequality Report 2018 Technical Notes for Figures and Tables Lucas Chancel, Richard Clarke, Amory Gethin Abstract This document provides a technical description of the figures and tables presented in the World Inequality Report 2018. Contents Contents 2 Part 1 – The WID.world project and the measurement of economic inequality 9 Figure 1.1. Top 10% income share in Brazil, 2001-2015: survey vs. national accounts (WID.world) series 9 Figure 1.2. Top 0.01% wealth share and its composition in emerging and rich countries, 2000-2009 10 Part 2 – Trends in global income inequality 11 Figure 2.1.1a. Top 10% income shares across the world, 1980-2016: Rising inequality almost everywhere, but at different speeds 11 Figure 2.1.1b. Top 10% income shares across the world, 1980-2016: Is world inequality moving towards the high-inequality frontier? 13 Figure 2.1.1c. Top 10% national income shares across the world, 2016 16 Figure 2.1.1e. Bottom 50% income shares across the world, 1980-2016 18 Table 2.1.2. Share of global growth captured by income groups, 1980-2016 21 Figure 2.1.2. Total income growth by percentile in USA-Canada and Western Europe, 1980-2016 23 Figure 2.1.3. Total income growth by percentile in China, India, USA-Canada, and Western Europe, 1980-2016 25 2 Figure 2.1.4. Total income growth by percentile across all world regions, 1980-2016 27 Figure 2.1.5. Geographic breakdown of global income groups in 1990 30 Figure 2.1.6. Geographic breakdown of global income groups in 2016 33 Figure 2.1.7. Global Bottom 50% and Top 1% income shares, 1980-2016 35 Figure 2.1.8. Global top 10% income share, 1980-2016: between versus within country inequality 38 Table 2.2.1. The distribution of world national income and gross domestic product, 2016: Purchasing Power Parity 41 Table 2.2.2. The distribution of world national income and gross domestic product, 2016: Market Exchange Rates 43 Table 2.2.3. The distribution of world national income and gross domestic product, 1980: Purchasing Power Parity 44 Table 2.2.4. Total national income growth rates by world region, 1950-2016 45 Figure 2.2.1. Average income in Africa and Asia relative to the global average, 1950- 2016 46 Figure 2.2.2. Average income in China and Latin America relative to the global average, 1950-2016 47 Figure 2.3.1. Top 1% national income share in Anglophone countries, 1920-2015 48 Figure 2.3.2a. Top 1% vs. Bottom 50% national income shares in the USA and Western Europe, 1980-2016 50 Figure 2.3.2b. Top 10% national income share in Europe and the USA, 1980-2016 52 Figure 2.3.2c. Bottom 50% national income share in Europe and the USA, 1980- 2016 54 Figure 2.3.3. Top 1% national income share in European countries, 1890-2014 56 Figure 2.3.4. Top 1% national income share in Northern European countries, 1900- 2013 58 Figure 2.3.5. Top 1% national income share in emerging countries 1900-2015 60 Figure 2.3.6. Top 10% national income share in Brazil, the Middle East, South Africa and other countries, 2012-2016 61 Table 2.4.1. The distribution of national income in the USA, 2014 61 Table 2.4.2. The growth of national income since World War II in the USA, 1946- 2014 62 3 Figure 2.4.1a. Pre-tax income shares of the Top 1% and Bottom 50% in the USA, 1962-2014 63 Figure 2.4.1b. Pre-tax incomes of the Top 1% and Bottom 50% in the USA, 1962- 2014 63 Figure 2.4.2. Pre-tax and post-tax income of the Bottom 50% in the USA, 1962-2014 64 Figure 2.4.3a. Pre-tax income of the Bottom 50% by age group in the USA, 1979- 2014 65 Figure 2.4.3b. Post-tax income of the Bottom 50% by age group in the USA, 1979- 2014 66 Figure 2.4.4. The “U-shaped evolution” of the national income share of the Top 10% in the USA, 1917-2014 66 Figure 2.4.5. The share of capital in pre-tax income in the USA, 1913-2014 67 Figure 2.4.6. Average tax rate by pre-tax income group in the USA, 1913-2014 68 Figure 2.4.7. Post-tax income of the Middle 40% in the USA, 1962-2014: The role of transfers 68 Figure 2.4.8. Difference in the pre-tax labor income between working-age men and women in the USA, 1962-2014 69 Figure 2.4.9. Share of women in the employed population by labor income group in the USA, 1962-2014 69 Table 2.5.1. The distribution of national income in France, 2014 70 Figure 2.5.1. Incomes shares in France, 1900-2013: The rise of the lower and middle classes 71 Figure 2.5.2. Average annual real growth by income group in France, 1950-2014 72 Table 2.5.2. Income growth and inequality in France, 1900-2014 73 Figure 2.5.3. Rising top inequality in France, 1983-2013 74 Figure 2.5.4a. Gender gap by age in France, 1970-2012, and Figure 2.5.4.b. Share of women in top labor income groups in France, 1970-2012 74 Figure 2.6.1. Top 1% income share in Germany, 1871-2013 75 Figure 2.6.2. Income shares in Germany, 1961-2013 75 Figure 2.6.3. Income inequality in Germany, 1983-2013 76 Table 2.7.1. The distribution of national income in China, 2015 76 Figure 2.7.1. Income shares in China, 1978-2015 77 Table 2.7.2. Income growth and inequality in China, 1978-2015 78 4 Figure 2.7.2. Average annual real growth by income group in China, France and the USA, 1978-2015 79 Figure 2.7.3a. Income share of the Top 10% in rural and urban China, 1978-2015 and Figure 2.7.3b. Income share of the Bottom 50% in rural and urban China, 1978- 2015 79 Figure 2.8.1. Average national income per adult in Russia and Western Europe, 1980-2016 80 Table 2.8.1. The distribution of national income in Russia, 2016 81 Figure 2.8.2. Ratio between national income per adult in Russia and Western Europe, 1870-2016 82 Table 2.8.2. Income growth and inequality in Russia, 1989-2016 83 Figure 2.8.3. Top 10% income share in France, Russia and the USA, 1905-2015 84 Figure 2.8.4. Total income growth by percentile in Russia, 1989-2016 84 Figure 2.8.5. Income shares in Russia, 1905-2015 85 Table 2.8.3. Average annual real growth by percentile in Russia, 1905-2016 86 Figure 2.8.6. Average annual real growth by percentile in Russia, 1905-2016 86 Figure 2.9.1a. Top 10% and Middle 40% income shares in India, 1951-2014 87 Figure 2.9.1b. Top 1% and Bottom 50% income shares in India, 1951-2014 88 Figure 2.9.2. Top 1% income share in India, 1922-2014 88 Figure 2.9.3a. Income growth in India, 1951-2014: Full population vs. Bottom 50% 89 Figure 2.9.3b. Income growth in India, 1951-2014: Full population vs. Top 10% vs. Top 1% 90 Table 2.9.1. Total income growth by percentile in China, France, India and the USA, 1980-2014 91 Figure 2.9.4. Total income growth by percentile in India, 1980-2014 91 Table 2.9.2. Income growth and inequality in India, 1951-1980 92 Table 2.9.3. The distribution of national income in India, 2014 93 Figure 2.10.1. Inequality in the Middle East, Western Europe and the USA, 2012- 2016 94 Figure 2.10.2. Top 10% income shares in the Middle East and other countries, 2012- 2016 95 Figure 2.10.3. Average income in the Middle East and Western Europe, 1990-2016 96 5 Table 2.10.1. Population and income in the Middle East, 2016 97 Figure 2.10.4 Share of foreigners in Gulf countries, 1990-2015 97 Figure 2.11.1. Bottom 50% and Top 10% income shares in Brazil, 2015 98 Table 2.11.1. The distribution of national income in Brazil, 2015 98 Table 2.11.2. Survey income and national income series in Brazil, 2015: Comparing income shares 99 Figure 2.11.2.a. Income shares of the Middle 40% and Top 1% in Brazil, 2001-2015 and Figure 2.12.2.b. Income shares of the Bottom 50% and Top 0.1% in Brazil, 2001-2015 100 Figure 2.11.3. Top 10% income share in Brazil, 2001-2015: National income series vs. survey income series 100 Table 2.11.3. Income growth and inequality in Brazil, 2001-2015 101 Figure 2.12.1. Top 1% income share in South Africa, 1914-2012 102 Figure 2.12.2. Average income per adult and average income of the Top 1% in South Africa, 1914-2014 103 Figure 2.12.3. Top 1% and top 10% shares in emerging countries. 103 Part 3 – Public versus private capital dynamics 105 Figure 3.1.1. Net private wealth to net national income ratio in rich countries, 1970- 2016 105 Figure 3.1.2.